A Study on High-Speed Rail Pricing Strategy in the Context of Modes Competition

Yao, Enjian; Yang, Qirong; Zhang, Yongsheng; Sun, Xun

doi:10.1155/2013/715256

Cited by 22 publications

(5 citation statements)

References 11 publications

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“…The aforementioned game-theoretic study by Sato and Sawaki also used a multinomial logit model to find optimal fares under multiple schedules of different modes ( 6 ). For HSR pricing, Behrens and Pels used a mixed logit model ( 19 ) and Yao et al used a nested logit model ( 20 ). Both of these are extensions of the basic logit model.…”

Section: Literature and Contributionsmentioning

confidence: 99%

Multi-Objective Pricing Optimization for a High-Speed Rail Network Under Competition

Cao

Vaze

et al. 2019

Transportation Research Record: Journal of the Transportation R

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Multi-objective pricing of high-speed rail (HSR) passenger fares becomes a challenge when the HSR operator needs to deal with multiple conflicting objectives. Although many studies have tackled the challenge of calculating the optimal fares over railway networks, none of them focused on characterizing the trade-offs between multiple objectives under multi-modal competition. We formulate the multi-objective HSR fare optimization problem over a linear network by introducing the epsilon-constraint method within a bi-level programming model and develop an iterative algorithm to solve this model. This is the first HSR pricing study to use an epsilon-constraint methodology. We obtain two single-objective solutions and four multi-objective solutions and compare them on a variety of metrics. We also derive the Pareto frontier between the objectives of profit and passenger welfare to enable the operator to choose the best trade-off. Our results based on computational experiments with Beijing–Shanghai regional network provide several new insights. First, we find that small changes in fares can lead to a significant improvement in passenger welfare with no reduction in profitability under multi-objective optimization. Second, multi-objective optimization solutions show considerable improvements over the single-objective optimization solutions. Third, Pareto frontier enables decision-makers to make more informed decisions about choosing the best trade-offs. Overall, the explicit modeling of multiple objectives leads to better pricing solutions, which have the potential to guide pricing decisions for the HSR operators.

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Section: Literature and Contributionsmentioning

confidence: 99%

Multi-Objective Pricing Optimization for a High-Speed Rail Network Under Competition

Cao

Vaze

et al. 2019

Transportation Research Record: Journal of the Transportation R

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show abstract

“…Being a safe, rapid, reliable, comfortable, and convenient mode of transport, HSR has injected new vitality into the existing railway transport system and became a symbol of modern society [1][2][3][4][5][6].…”

Section: History Of Hsrmentioning

confidence: 99%

Comprehensive Sustainability Evaluation of High-Speed Railway (HSR) Construction Projects Based on Unascertained Measure and Analytic Hierarchy Process

2018

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This paper aims to evaluate the sustainability of high-speed railway (HSR) construction projects in a comprehensive manner. To this end, the author established an index system, involving 4 primary indices, 9 secondary indices, and 32 tertiary indices. The analytic hierarchy process (AHP) and the unascertained measure were introduced to calculate the weights of these indices. Then, the index system was applied to evaluate the sustainability of the China's Harbin-Dalian Passenger Dedicated Line (PDL). The results show that the Harbin-Dalian PDL project achieved good results in terms of process, economic benefit, impact, and sustainability, and will bring long-term benefits in the fields of tourism, economy, and transport capacity, as well as many other fields. In spite of its good overall sustainability, the project needs to further increase its economic benefits and reduce its negative environmental impact. For this purpose, it is necessary to adopt the management mode of "separation between network and transportation" and apply noise prevention measures like noise barriers, tunnels, and overhead viaducts. This research lays a solid basis for the sustainability evaluation of HSR construction projects, and simplifies the modelling process for designers of HSR.

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“…With the application of dynamic game theory, Xu et al [10] established a dynamic pricing model between HSR and air transportation. Yao et al [11] analyzed the pricing strategy for HSR in Wuhan-Guangzhou corridor with the consideration of the competition between passenger rail transportation and other transport modes. Bingyi [12] developed a dynamic programming model to deal with the HSR revenue optimization problem with multitrain, multisegment, and multiclass, by considering passengers choice behavior.…”

Section: Literature Reviewmentioning

confidence: 99%

Ticket Fare Optimization for China’s High-Speed Railway Based on Passenger Choice Behavior

Jiao

Liu

Clarke

2017

Discrete Dynamics in Nature and Society

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Although China’s high-speed railway (HSR) is maturing after more than ten years of construction and development, the load factor and revenue of HSR could still be improved by optimizing the ticket fare structure. Different from the present unitary and changeless fare structure, this paper explores the application of multigrade fares to China’s HSR. On the premise that only one fare grade can be offered for each origin-destination (O-D) at the same time, this paper addresses the questions of how to adjust ticket price over time to maximize the revenue. First, on the basis of piecewise pricing strategy, a ticket fare optimization model is built, which could be transformed to convex program to be solved. Then, based on the analysis of passenger arrival regularity using historical ticket data of Beijing-Shanghai HSR line, several experiments are performed using the method proposed in the paper to explore the properties of the optimal multigrade fare scheme.

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A Study on High-Speed Rail Pricing Strategy in the Context of Modes Competition

Cited by 22 publications

References 11 publications

Multi-Objective Pricing Optimization for a High-Speed Rail Network Under Competition

Multi-Objective Pricing Optimization for a High-Speed Rail Network Under Competition

Comprehensive Sustainability Evaluation of High-Speed Railway (HSR) Construction Projects Based on Unascertained Measure and Analytic Hierarchy Process

Ticket Fare Optimization for China’s High-Speed Railway Based on Passenger Choice Behavior

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